Carbon Market Continues to Evolve

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Hedges added that areas such as reducing nitrous oxide from fertilizer are going to become a component of lowering emissions, as well as improving soil health and water quality.

The space continues to evolve. Here are just a few recent announcements:

LAND O’LAKES TRUTERRA PAYS OUT

Truterra announced earlier this week that it was paying more than $4 million in upfront payments to farmers who enrolled in its carbon program, TruCarbon, with its producers sequestering more than 200,000 metric tons. That breaks down to an average payment of $20 per ton. Truterra stated its program had paid an average payment of $20,000 to farmers with some payments hitting more than $100,000.

For 2022, Truterra stated it “will offer two distinct approaches to encourage climate-smart practices and carbon storage in agricultural soils.” The first program will structured similar to Truterra’s 2021 program to generate carbon “assets” with farmers who have recently adopted soil-health practices that would build more carbon in the soil. For farmers just getting started with climate-smart practices and exploring their options, Truterra will have another program to help them implement new practices. These farmers would receive one-time payments of up to $2 an acre for developing new conservation practices. Under this approach, farmers will maintain ownership options to market carbon credits down the line.

For more details on Truterra’s 2022 program, visit https://www.truterraag.com/….

BAYER CREATES PROJECT CARBONVIEW

On Wednesday, Bayer announced that it will launch a carbon footprint measurement platform called Project Carbonview. The platform was developed with Amazon Web Services and an ag software developer company called Bushel.

Project Carbonview will start as a pilot program aimed at U.S. farmers growing corn for ethanol, Bayer said in a news release on the announcement. The company will initially compensate farmers for their participation in the program, which helps growers track carbon emissions from planting through production. Data will be collected on their farming practices via Bayer’s Climate FieldView application and connected to delivery and transportation data through Bushel’s platforms, to measure the carbon impact of their sourcing and purchasing decisions.

Ultimately, Bayer expects growers participating in the program to be compensated by low-carbon fuel markets of the future.

“Project Carbonview is focused on creating awareness and acceptance for low-carbon fuel markets,” the news release explained. “Ultimately, once these markets are broadly established, we anticipate growers will be compensated based on the implementation of sustainable farming practices and will share in the financial incentives created by low-carbon fuel markets.”

More details on Bayer’s Project Carbonview can be found at https://media.bayer.com/….

BASF LAUNCHES CARBON PROGRAM

BASF also launched its Global Carbon Farming program to help farmers reduce their greenhouse gas emissions. BASF’s program will allow farmers to track practices that reduce carbon emissions through BASF’s suite of seeds, traits, chemicals, biological crop protection, digital farming and fertilizer management. The program will help farmers sequester more carbon in the soil as BASF builds a framework to allow farmers to generate carbon credits. BASF Agricultural Solutions also recently started multi-year field trials focused on sustainable agricultural practices, carbon sequestration and emission reductions on the farm. BASF Agricultural Solutions has a commitment to reduce the carbon footprint 30% by 2030 for every ton in production of canola, corn, rice, soy and wheat. The BASF program will start in 2022.

For more details on BASF’s program, visit https://www.basf.com/….

LOCUS AG ENHANCES ITS CARBONNOW PROGRAM

Locus Agricultural Solutions also recently announced it was adding incentives to its CarbonNow program. The changes would address farmer concerns about payments. The company cited a farmer panel, pointing out carbon payments don’t typically cover the costs of changing practices; or there are fees and data-collection requirements that can be a burden as well.

With that, Locus AG stated the company is adding minimum guarantee payment — a minimum of $48 an acre over four years ($12 per acre annually), as a bonus incentive.

Locus AG also stated the company is expanding its program eligibility to enroll those farmers who have been using practices such as no-till, or minimum-tillage, over the past several years. Locus promotes its line of soil biological products that the company states can increase soil carbon by as much as two to three tons per acre.

More details on Locus AG’s program can be found at www.locusag.com

For more information on biological products, see “Navigating Nutrient Products” https://www.dtnpf.com/…

DTN Staff Reporter Emily Unglesbee contributed to this report.

Chris Clayton can be reached at Chris.Clayton@dtn.com

Follow him on Twitter @ChrisClaytonDTN